04:53 PM EDT, 03/12/2024 (MT Newswires) -- Incyte's ( INCY ) povorcitinib has the potential to treat patients with hidradenitis suppurativa and prurigo nodularis, while opzelura is less likely to be used for mild hidradenitis suppurativa, RBC Capital Markets said in an emailed Tuesday.

Hidradenitis suppurativa and prurigo nodularis are both skin conditions.

The latest phase 2 data of povorcitinib showed that the investigative drug "may potentially be better than other available

therapies" in prurigo nodularis, RBC said.

The phase 2 study met its primary endpoint with at least four-point improvement, and also met its secondary endpoints, Incyte ( INCY ) said Sunday.

"We ultimately see a [more than $1.2 billion] out-year opportunity for povorcitinib and believe it could represent an underappreciated pipeline asset with a reasonable risk profile, though it will take some time to play out," RBC analysts said.

Opzelura "looked okay" in hdradenitis suppurativa but a potential expansion into milder patients isn't clear, according to the note.

RBC had a sector perform rating for Incyte ( INCY ), with a price target of $65.